Wayfair Q4 sales top Street but earnings disappoint
Wayfair reported a mixed quarter, with revenue that topped estimates but earnings that fell far short.
The home furnishings and décor giant reported a net loss of $128 million, or $1.02 a share, for the quarter ended Dec. 31, compared to a loss of $174 million, or $1.49 a share, in the year-ago period. Adjusted for one-time items, the company had a loss of $0.25 a share, more than $0.01 loss per share analysts were expecting.
Total revenue inched up 0.2% to $3.121 billion, topping analysts' estimates of $3.065 billion.
Wayfair’s active customers totaled 21.4 million as of year-end, down 4.5% year-over-year. Orders per customer, measured as LTM orders divided by active customers, was 1.85 for the fourth quarter, compared to 1.84 for the year-ago quarter.
Orders delivered in the fourth quarter fell 5.3%, to 10.7 million. The average order value was $290 in the fourth quarter, compared to $276 in the year-ago period.
"The fourth quarter was a strong conclusion to the year across multiple fronts,” said Niraj Shah, CEO, co-founder and co-chairman, Wayfair. "From a topline performance perspective, we ended 2024 on a high note - with net revenue showing positive year-over-year growth”
"Our strong financial performance enabled us to tap into the high yield markets for the first time, putting us in the strongest balance sheet position in many years,” Shah continued. “We're making smart, high return investments across the business, and at the same time remain committed to growing adjusted EBITDA dollars year-over-year.”
In January, Wayfair announced it was leaving the German market as it looks to focus on other growth initiatives. Going forward, Wayfair said it will continue to focus on operations and investments in its international markets — Canada, the U.K., and Ireland — where it has achieved meaningful market share and where “we believe hold significant potential to replicate the success we’ve achieved in the U.S,” Shah wrote in a letter to employees.
Globally, the company’s core initiatives include expanding its physical retail footprint, optimizing its marketing reach, growing its loyalty program and developing its Wayfair Verified program.
In May, Wayfair opened its first-ever large-format store, at Edens Plaza in Wilmette, Ill. Spanning 150,000 sq. ft., the two-level space is designed as a one-stop shopping destination for all things home. The company will unveil the first physical stores for its upscale Perigold banner this year.
[READ MORE: Perigold adds another location to its brick-and-mortar debut]
Based in Boston, Wayfair generated $11.9 billion in net revenue for the year ended Dec. 31, 2024. Its brand portfolio includes: Wayfair, AllModern, Birch Lane, Joss & Main, Perigold and Wayfair Professional.
